Morgan Stanley (MS) analyst Betsy Graseck has downgraded JPMorgan Chase (JPM) to Equal Weight from Overweight, citing several challenges facing the banking giant. Graseck believes JPMorgan is among the worst-positioned banks to handle potential interest rate cuts by the Federal Reserve,

Morgan Stanley Research shuffled up its rating recommendations on five U.S. lenders on Monday, as analyst Betsy Graseck identified which banks should see the most expansion in net interest margin throughout the Federal Reserve's monetary easing cycle.

JPMorgan Chase & Co. has been the best performing big bank stock since the Federal Reserve started hiking interest rates more than two years ago. But as the US central bank begins to unwind those moves,